Seasonality, US Production, Rig Counts and Gasoline Demand

Citi Research fails to address the Fundamentals side of the equation, the Doha Meeting is Meaningless in the overall scope of the Oil Market.

Pay Attention to the declines in U.S. Production over the next 4 Months. Along with the drop in Rig Counts which are at record lows, and the lag effect between the drop in Rig Counts and U.S. Production Declines.

The Decline in Gasoline Stocks is reflective of the Strong Demand for Gasoline given these low prices relative to the last 10 years of historical prices. Compare Gasoline demand with this time last year, and demand is only going to strengthen into the heart of the Summer Driving Season.